Question: Baker Inc prepares monthly budgets. The current budget plans for a September ending merchandise Inventory of 44,000 units. Company policy is to end each month
Baker Inc prepares monthly budgets. The current budget plans for a September ending merchandise Inventory of 44,000 units. Company policy is to end each month with merchandise Inventory equal to 20% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 220,000 units in October Bales (Unita) Purchases (Units) July 170,000 202,000 August 330,000 322,000 September 290,000 276,000 Prepare the merchandise purchases budgets for the months of July, August, and September August Baker Inc Marchandise Purchases Budget For July, August, and September July Budgeted ending Inventory units Budgeted units sales for month Required units of available inventory Beginning inventory (units) Units to be purchased 202,000 September 44,000 322,000 270,000
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